How Broadly and for How Long Should Exclusivity (Limits on Work for Competitors) Apply?
This article was automatically translated from the Japanese original. Read the original in Japanese
As a rule, exclusivity should be limited to the scope the campaign's objective actually requires. Define three points in writing before signing the contract: product category, duration, and platforms covered. The more broadly you restrict, the greater the burden on the influencer you are asking, which makes agreement harder to reach and can also affect the relationship.
| Item to define | Light restriction | Heavy restriction |
|---|---|---|
| Scope of competitors | Only specific brands in the same product category | The entire category, or even related categories |
| Duration | A short period before and after the post goes live | The entire contract term, or a period that continues after the contract ends |
| Platforms covered | Posts on the same platform as this request | All social media, plus appearances and events |
| Exceptions | Existing contracts agreed in advance are excluded | No exceptions |
What should you use to draw the line on the scope of competitors?
Draw the line based on whether readers would compare the products side by side. For a facial lotion campaign, for example, lotion brands in a similar price range are the closest competitors. Even within beauty, whether to include hair care depends on the objective.
Listing brand names makes the scope clear, but it needs updating whenever a new competitor appears. Defining by category reduces the need for updates, but leaves more room for differing interpretations. Using both, and adding a line such as "if in doubt, consult in advance," makes day-to-day operation less likely to stall.
How should you think about the periods before and after a post?
Decide the duration based on when the campaign's peak will occur. For a post timed to a product launch, covering the period from shortly before publication until the peak has passed is usually enough. For a term-based ambassador, the entire contract term tends to be covered, but if you keep restrictions in place after the contract ends, be prepared to explain why. The differences between contract types are covered in Per-Post Contracts vs. Term Contracts: Which Should You Choose?.
How far should the platform scope extend?
If this request is for an Instagram post, make the same platform the core of the restriction. If you want to include YouTube appearances or events, consider whether that is proportionate to what you are asking. The broader the scope, the more natural it is to discuss revisiting compensation and terms.
How should you handle cases where the influencer already works with a competitor?
Sometimes the person you are considering already has a relationship with a competitor. In that case, before signing, confirm whether any existing arrangements exist and how long they run. Specify in the contract any exceptions that will be excluded from exclusivity. Pushing ahead with a simultaneous engagement anyway tends to lead to disagreements over contract interpretation later.
What if the scope of competitors changes during the contract?
On a long contract, a competitor may launch a new product or your company may move into a new category, leaving the agreed scope out of step with reality. One example is a competitor entering skincare partway through a shampoo ambassador contract. If the contract is written so that the scope expands automatically, the other party ends up with more restrictions without their knowledge. It is safer to state that, when you want to change the scope, you will propose the change and agree again.
How should both sides communicate when a situation may touch the restriction?
Judging whether something falls under the restriction is difficult for both sides. Designating a contact person the influencer can consult briefly at the brand before accepting another company's request helps reduce misunderstandings. When the brand receives a consultation, it should indicate roughly when it will respond. Delayed answers that hold up the other party's work are something to avoid as a matter of program design.
In what order should the discussion proceed?
- Clarify the campaign's objective and what you want to protect (pre-launch information, consistency of brand worldview, etc.)
- Draft the scope of competitors by category and by brand
- Decide the duration and platforms based on the campaign schedule
- Ask about the other party's existing contracts and what they would like treated as exceptions
- If the scope is broad, discuss revisiting compensation and terms at the same time
- Put the agreed content in the contract and decide on a contact for consultation when in doubt
For example, when two brands launch similar products at the same time, one approach is to agree on a short period before and after publication so that both campaigns are protected. For an annual ambassador contract, limiting the restriction to the main category and handling everything else by individual consultation makes operation easier.
What should be decided at the design stage?
Disputes are most likely to arise when one side tries to widen the scope later. If you tell the other party at the time of the request what the restriction is meant to protect, it becomes easier to gain their understanding and agreement. For an overview of the minimum items to include in a contract, see our pillar article, What Are the Minimum Items to Include in an Influencer Contract?.
Scope of This Article
This article explains how to think about the scope and duration of exclusivity. It does not cover legal assessments under laws such as the Antimonopoly Act, draft wording for specific contract clauses, or how to determine compensation. For actual contracts, please consult your legal department or a specialist.
Conclusion
With exclusivity, restricting more broadly does not bring more security; narrowing it to fit what you want to protect makes it easier to operate. Deciding scope, duration, and platforms in words before signing reduces the burden on both sides.